Disappearing deductible car insurance is also known as vanishing deductible car insurance. This insurance program rewards drivers that do not file an accident claim with their car insurance provider. Typically, the policyholder is offered a certain amount off of their car insurance deductible each year that they go without filing an accident claim.
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Many car insurance providers offer a vanishing deductible or disappearing deductible program, but there is one nation-leading car insurance provider in particular who is more well-known for it.
Which car insurance company is best known for vanishing deductible car insurance?
Nationwide Insurance, in particular, likes to promote its vanishing deductible car insurance plan. Nationwide Insurance believes that policyholders who do not have accident claims on their insurance record should not have to pay the same deductible as policyholders that do.
With the Nationwide Insurance vanishing deductible plan, every year that a policyholder goes without an accident claim, $100 is subtracted from their deductible. The maximum amount that can be deducted from the deductible amount is $500. Policyholders receive $100 removed from their deductible amount instantly just for enrolling in the Nationwide Insurance vanishing deductible program.
The main way that Nationwide advertises its special vanishing deductible car insurance program is through a clever commercial campaign. In the commercials, the Nationwide Insurance spokesman tells people about the vanishing deductible program by using special effects to illustrate his point.
In one popular commercial, he is sitting on a park bench with a woman and there is a boulder hanging above her head in a net. As the spokesman describes how the policyholder’s deductible will shrink each year she goes without an accident, the boulder continues to shrink until it is just a small rock that falls gingerly into the woman’s hand.
Do all disappearing deductible plans work the same way?
No. The disappearing deductible plans vary from car insurance provider to car insurance provider. The main way these plans differ is by the amount of money the car insurance provider removes from the deductible amount each year.
As previously stated, Nationwide Insurance removes $100 every year, with a total discount limit of $500. Another nation leading car insurance provider, The Hartford, offers a much different approach. With The Hartford, the amount removed each year the policyholder goes without an accident is only $50. While the annual discount amount is half that of Nationwide Insurance, The Hartford does not place a limit on the ultimate amount by which the deductible can be reduced. So with The Hartford, the policyholder earns less of a discount each year, but ultimately can end up with no car insurance deductible at all.
Is there a drawback to signing up for a disappearing deductible car insurance plan?
The only real drawback to opting into a disappearing deductible plan is that it costs more than an average car insurance plan. These disappearing deductible plans are usually only available with a higher priced car insurance package or an added flat rate.
The Hartford, for example, only offers its disappearing deductible plan with its Advantage Plus car insurance package. This is The Hartford’s more expensive car insurance package. This car insurance package adds between five percent and six percent to the policyholder’s car insurance cost.
Nationwide Insurance works a bit differently than The Hartford when it comes to the cost of its vanishing deductible plan. Instead of packaging its plan with a higher priced car insurance package, Nationwide offers its program to all of its policyholders at a flat rate of $60 annually. If the policyholder has multiple vehicles insured with Nationwide, they can add the additional cars for $10 each annually.
Is the cost of a disappearing deductible car insurance plan worth it?
The cost of these disappearing deductible plans does add up over time. With the Nationwide Insurance plan, after five years of no accident claims the policyholder’s deductible is reduced by $500, but that policyholder has ended up paying $300 or more depending on their number of cars enrolled in the program.
With The Hartford, the percentage increase can add up to an extra $80 on the policyholder’s car insurance premium each year. Even though with The Hartford plan the policyholder can eventually have no deductible at all, that extra amount on their premium adds up each year.
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